Amid an ongoing disagreement with investors, Byju Raveendran, the Founder and CEO of Byju’s, addressed concerns regarding the delay in employee salaries. Raveendran explained that the education technology company is experiencing difficulties in processing salaries because funds raised from a recent rights issue are locked in a separate account as per the National Company Law Tribunal's (NCLT) instructions.
In a letter dated March 2, Raveendran expressed regret over the salary delay, attributing it to a lack of available capital and the funds being held due to the dispute involving a few investors. Despite successfully completing the rights issue, Byju’s is unable to access the raised funds to fulfill its immediate financial obligations, including paying salaries to its 15,000-strong workforce.
The NCLT's order on February 27 directed Byju’s to place the funds from the rights issue in an escrow account until the dispute with investors is resolved. This action, stemming from an oppression and mismanagement petition filed against Byju’s by four investors, has further complicated the company’s financial operations.
Raveendran assured employees of his ongoing efforts to resolve the situation and ensure they receive their rightful payments. He reiterated the company’s commitment to disbursing salaries by March 10, subject to legal clearance. Despite the challenges, Raveendran expressed gratitude for the employees' resilience and understanding during this turbulent period.
The dispute between Byju’s and its investors revolves around a $200 million rights issue, with allegations of oppression and mismanagement leading to legal proceedings. The NCLT has requested responses from both parties and issued notices to relevant government authorities to address the matter.
As Byju’s works through this difficult phase, Raveendran remains steadfast in upholding the company’s principles and prioritizing the welfare of its employees. Through ongoing efforts to seek resolution and restore stability, Byju’s aims to overcome obstacles and emerge stronger from this situation.
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